Company X has a bond outstanding with four years to maturity and an annual coupon rate of 4%.  If the yield to maturity (market rate of interest) is 3%, what is the price of the bond?  The face value of the bond is $1,000. 

From Question 8, if the market rate of interest has increased from 3% to 5%, calculate the bond price elasticity. 

If you invest $1,000 annually for 10 years earning 7% per year, calculate the amount of money that you will have. 

Explain DSU. 

If you invest $1,000 annually for 10 years earning 7% per year, calculate the amount of money that you will have. 

Your goal is to accumulate $1,000,000 when you retire, which is forty years from now.  If you can earn 8% per year on your investment, what is your annual contribution in equal amount? 

Your goal is to accumulate $1,000,000 when you retire, which is forty years from now.  If you can earn 8% per year on your investment, what is your annual contribution in equal amount? 

Given the following interest rates: tR1 = 1.1% = 0.011 tR2 = 1.4% = 0.014 tR3 = 1.9% = 0.019 tR4 = 2.4% = 0.024 a.  Calculate the short-term interest rate one year from now. b.  Calculate the short-term interest rate two years from now. c.  What is the interest rate on a three-year investment? 

From Question 8, if an investor believes that the short-term interest rate one year from now is 1.8% and has the following two options:  Option A: 1 2-year investment, one investment with a maturity of two years Option B: 2 1-year investments, two investments with a maturity of one year Which option is better?  Explain.  

Discuss one similarity and one difference between a banker’s acceptance and a negotiable certificate of deposit.